Unilever reported stronger-than-expected underlying sales growth for the first quarter, thanks to price increases and continued consumer interest in its premium product lines.

The company also stated it expects only a limited direct impact from ongoing tariffs.

Consumer goods companies like Unilever have been under pressure to win back customer loyalty after years of raising prices. Recently, they've had to contend with unpredictable buying behavior, influenced by concerns over the potential effects of tariffs introduced during the Trump administration.

Initially, firms raised prices and accepted tighter profit margins in response to rising costs stemming from the COVID-19 pandemic. These challenges were compounded by the surge in energy prices following Russia's invasion of Ukraine.

“We remain mindful of the uncertain macroeconomic environment, currency fluctuations, and shifting consumer sentiment. We’ll continue to adapt our strategies as needed,” the company said in a statement.

This marks Unilever’s first major update since it shook up leadership earlier this year, replacing former CEO Hein Schumacher with CFO Fernando Fernandez in March.

The company—known for brands like Dove, Ben & Jerry’s, Vaseline, Hellmann’s, and Lifebuoy—reported 3% growth in underlying sales for the quarter ending March 31. This beat analysts' expectations of a 2.8% rise and reaffirmed Unilever’s outlook for 2025.

Under Schumacher, Unilever had already introduced a series of cost-cutting measures, including a planned spin-off of its ice cream business and significant job cuts aimed at improving long-term performance. In February, the company confirmed that the ice cream division will be listed on the Amsterdam stock exchange, with secondary listings in London and New York.

Despite global economic uncertainty, Unilever said it remains confident in its full-year strategy. It also noted that its productivity initiative is ahead of schedule and projected to save approximately £550 million ($729.74 million) by the end of 2025. Photo by Exploringlife, Wikimedia commons.